Massachusetts State Tax Guide
Massachusetts tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
Massachusetts State Tax: Overview
Massachusetts has a flat personal income tax rate of 5% of federal adjusted gross income. Beginning in 2023, an additional 4% tax is imposed on income over $1 million. Property taxes in Massachusetts are relatively high and the commonwealth has an estate tax as well. But sales taxes in Massachusetts are relatively low.
Massachusetts Income Taxes
Massachusetts has a flat rate of 5% of federal adjusted gross income. (Note: On November 8, 2022, Massachusetts voters approved a constitutional amendment to add an additional 4% tax on taxable income over $1 million starting in 2023.)
- Social Security benefits are not taxed by Massachusetts.
- Income from the contributory federal government, Massachusetts state, and Massachusetts local government retirement plans is exempt. Income from noncontributory military retirement plans is also exempt. In addition, a deduction is available for contributory pension income from other state or local governments that do not tax Massachusetts public pensions.
- Railroad Retirement benefits are also exempt.
Massachusetts Sales Tax
Massachusetts has a 6.25% state-level sales tax. There are no local sales taxes.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- Groceries: Exempt
- Clothing: Exempt if under $175
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
What are Property Taxes in Massachusetts?
In Massachusetts, average property taxes are paid about 1.14% of assessed home value, according to the Tax Foundation.
Massachusetts Property Tax Breaks for Retirees
Massachusetts homeowners and renters who are 65 or older may qualify to claim a refundable "circuit breaker" tax credit on their state income taxes to offset real estate taxes or rent paid during the year on their principal home.
Massachusetts Gas (Motor Fuel) Taxes
Gasoline: 24 cents per gallon.
Diesel: 24 cents per gallon.
Massachusetts Taxes on Alchohol and Tobacco
Cigarettes and little cigars: $3.51 per pack of 20
Snuff: 210% of the wholesale price
Chewing tobacco: 210% of the wholesale price
Other tobacco products: 40% of the wholesale price
Vapor products: 75% of the wholesale price
Source: Massachusetts Department of Revenue
Beer: An excise tax of $0.11 per gallon in 2022.
Wine: $0.55 per gallon
Liquor: $4.05 per gallon
Alcohol sales are exempt from sales tax.
Source: Massachusetts Department of Revenue
Marijuana: 10.75% excise tax; up to 3% local option taxes may also be due. the 6.25% Massachusetts sales tax also applies. There is no excise tax on medical marijuana sales in Massachusetts.
Massachusetts Estate and Inheritance Taxes
- Estates valued at more than $1 million may be subject to a Massachusetts estate tax. Tax rates range from 0.8% to 16%.
- There is an unlimited marital deduction for property left to a surviving spouse and an unlimited charitable deduction for property left to a qualified charity.
Read More on Massachusetts
- Could Some Massachusetts 62F Refunds Be Taxed?
- You Can Still File Your 2021 Massachusetts Return and Get a 62F Refund
As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
-
Stock Market Today: Dow Soars 511 Points After McDonald's Earnings
All three indexes notched impressive gains Monday ahead of a jam-packed week on Wall Street.
By Karee Venema Published
-
T-Mobile Walks Back Plan to Switch Users to Pricier Plans
Immediate customer backlash led T-Mobile to change course on planned price increases.
By Joey Solitro Published
-
Fake Charities: What To Know Before You Give
Donations Giving to a noble cause can make you feel good and lower your tax bill, but the IRS says to beware of fake charities that take advantage of kindness.
By Katelyn Washington Published
-
Are I Bonds Taxable? 10 Common Situations
taxes Series I bonds are a popular investment that can also help you save on taxes, but the federal income tax consequences can be complex.
By Joy Taylor Published
-
From Chatbots to Audits: How the IRS Will Use AI This Tax Season
IRS The IRS has plans to increase its use of AI. Here’s how the agency will do it and what it could mean for taxpayers.
By Katelyn Washington Published
-
IRS Gives California a Last-Minute Tax Deadline Extension
Tax Deadline As of today, Californians have another tax deadline extension from the IRS — this time until November.
By Kelley R. Taylor Published
-
Period Care Coalition Offers 'Tampon Tax Back' Refunds
Sales Tax A coalition of menstrual product brands offers sales tax refunds on period products. Here’s how to get yours.
By Kelley R. Taylor Published
-
Six Tax Deadlines for October 16
Tax Deadlines You might know about the federal tax return extension deadline, but did you know about these other Oct. 16 tax deadlines?
By Katelyn Washington Last updated
-
States That Won't Tax Your Death
Estate Taxes How much will your children —or other heirs — pay when you die? That depends on whether you live in a state with no death tax.
By Katelyn Washington Published
-
Five Things to Know About Social Security and Your Taxes
Social Security The Social Security COLA increase is just one aspect of your benefits that can impact your taxes.
By Kelley R. Taylor Published